Australian: ASF Financial Viability Woes

Mar 10, 2017

ASF is hanging on by a thread as it "bleeds funds" to keep its chin above water financially.

SOSA believes a good slice of that operating cash has been poured into running ad content to spruik unlikely and inflated benefits-claims to the public - placed in media outlets such as the Gold Coast Bulletin.

The state government, particularly State Development Minister Dr Anthony Lynham's office, have reportedly gone to ground on the matter and, as they have with SOSA, refused to expand on basic questions regarding the legitimacy and probity of the ASF brand and consortium, probity into the history of ASF's partners, or their overall position.

Auditors have cast doubt on the ­financial viability of the parent company behind a consortium that has won exclusive negotiating rights with the Queensland ­government to develop a $3 billion ­casino and hotel project on the Southport Spit.

The Australian writes -

"Auditors have cast doubt on the ­financial viability of the parent company behind a consortium that has won exclusive negotiating rights with the Queensland ­government to develop a $3 billion ­casino and hotel project on the Southport Spit.

"In a politically embarrassing finding for the state government, which has spruiked the project as a cornerstone economic development, the latest filings by ASX-­listed ASF, which is the sole owner of the consortium, reveal it has lost $92 million of $102m raised from investors. Its auditors have warned there is “material uncertainty’’ about its future.

"The accounts of ASF — whose directors are predominantly Chinese nationals — show the group lost $5.97m in the six months to December, almost as much as the $6.25m in cash it has remaining.

"Auditor Matthew Leivesley, partner of accountancy firm Grant Thornton, said there was a ­“material uncertainty” over whether ASF could continue as a “going concern”, and its continued operations were dependent on its ability to 'achieve sufficient profitability' and to raise more funds."